Basic Labor Policies
FAR Subpart 22.1 requires contractors and contracting officers to ensure compliance with all applicable labor laws, maintain proper labor relations, and manage overtime in government contracts.
Overview
FAR Subpart 22.1, "Basic Labor Policies," establishes the foundational labor standards and requirements that apply to government contracts. It addresses the relationship between contractors and labor, the necessity to comply with both federal and state labor laws, and the proper handling of overtime. The subpart sets the stage for ensuring fair labor practices, compliance with statutory requirements, and the avoidance of labor disputes that could disrupt contract performance. It is designed to guide contracting officers and contractors in maintaining lawful and ethical labor relations throughout the acquisition process.
Key Rules
- Labor Relations
- Contractors must maintain lawful and constructive labor relations, and contracting officers should avoid interfering in labor disputes unless contract performance is threatened.
- Federal and State Labor Requirements
- Contractors are required to comply with all applicable federal and state labor laws and regulations, including wage, hour, and safety standards.
- Overtime
- Overtime must be managed in accordance with statutory requirements, and contractors may need to obtain approval for overtime costs or justify their necessity.
Responsibilities
- Contracting Officers: Ensure contractors are aware of and comply with labor laws; monitor labor relations for potential impact on contract performance; review and approve overtime when required.
- Contractors: Comply with all relevant labor laws and regulations; maintain proper labor relations; manage overtime in accordance with contract and statutory requirements.
- Agencies: Oversee compliance and intervene if labor issues threaten contract performance.
Practical Implications
- This subpart exists to ensure government contracts are performed in a manner consistent with labor laws and fair labor practices.
- It impacts daily contracting by requiring vigilance in labor compliance, proactive management of labor relations, and careful handling of overtime.
- Common pitfalls include failure to comply with wage and hour laws, improper overtime practices, and inadequate response to labor disputes.